Navigating your way around the mortgage paperwork when buying a home can be daunting. When my husband and I bought our home, I left it to him to take care of most of that. I simply signed whatever needed my signature. Prospect Mortgage has two programs that I would have liked to have known about back then. The first one, 203k Loan, is geared towards buying a fixer-upper, while the other one, HopePath Loans, is geared towards purchasing a bank owned property.
The 203(k) Loan allows you to take out a loan to buy your home, and renovate it. You can also use it to refinance and renovate your current home. This one would have been perfect for us. The house that we bought needed work. It still does. We were able to get some extra money for repairs that needed to be made before we moved in. But, the extra money was closely monitored, and could only be used for the exact things outlined in the purchase agreement. I would have like to have had extra to renovate the kitchen, replace the carpeting, and replacing the floors in the kitchen and dining room.
- A minimum down payment of 3.5%
- A credit score of 640 or higher
- You currently have no other FHA loans
- You DO NOT have to be a
The HomePath Program, created by Fannie Mae, allows you to purchase a bank owned home, and allows for extra money to fix it up. Because of the economy, there are more homes available for purchase from a bank then when I bought my home.
- Buyers of Fannie Mae HomePath eligible properties
- If you wish to put 3%-20% down, you must have a 660 or greater credit score. If you wish to put more than 20% down, standard guidelines may allow a lower credit score.
- Buyers planning to use their property as primary residence, Second Home or Investment.
- We are currently accepting financing requests on properties valued at $60,000 or more.
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